US LNG exports surge but will buyers in China turn up?
Investing.com -- The Governor of the Bank of Korea, Rhee Chang-yong, has warned that currency volatility in South Korea is likely to persist due to uncertainties in the global economy and domestic politics. His comments were made during a meeting with reporters in Milan at the annual meeting of the Asian Development Bank. Rhee also mentioned that it was premature to determine if the Korean won’s exchange rate against the U.S. dollar has reached its lowest point.
In addition to this, Rhee indicated that the Bank of Korea (BOK) may need to reduce the growth forecast and lower lending rates to stimulate the economy. These comments come at a time when South Korea is grappling with a leadership void caused by political turmoil, which has led to a weakening of the Korean won.
The turmoil has been ongoing for several months, culminating in a "difficult week" for the country, as described by Rhee. This was a reference to the political situation a month before the snap presidential election scheduled for June 3.
The past week saw the resignation of former Prime Minister Han Duck-soo and former Finance Minister Choi Sang-mok. Han has now entered the presidential race following the removal of former President Yoon Suk Yeol, who had briefly imposed martial law in December.
In his remarks, Rhee stressed the importance of those remaining in their positions to strive for the national interest in ongoing trade negotiations with the U.S. This comes after the first round of trade discussions between South Korean and U.S. officials took place in Washington last month. Seoul is pushing for a deal that could mitigate the effects of U.S. tariffs on crucial sectors, such as the auto industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.